My Backyard

Legislation dramatically restructures transportation system; eliminates Turnpike Authority; ensures toll equity; and puts MBTA employees and retirees under GIC

BOSTON, MA – State Senator Scott Brown has announced that the Legislature has passed several reforms to the state’s transportation system. The consensus bill dissolves the Turnpike Authority and consolidates multiple agencies into a unified, independent agency, eliminating significant waste and producing billions of dollars in short- and long-term savings. The new agency would begin operating November 1, 2009.

In a key development, the final bill requires all active and retired MBTA workers to join the state’s Group Insurance Commission (GIC) by January 1, 2010 – the earliest date the GIC could accommodate given the challenge of moving up to 10,000 employees and retirees.

“This is another step forward when it comes to making reforms, but we still have a ways to go in getting the best transportation system for commuters and tax payers of the Commonwealth,” stated Senator Brown.

The final bill eliminates the Turnpike Authority, streamlines communications, and creates a more efficient and cost-effective system under a unifying agency called the Massachusetts Department of Transportation (MassDOT), potentially saving the Commonwealth up to $6.5 billion during the next 20 years. 

MassDOT sheds the many layers of bureaucracy in the current system by consolidating and sharing existing resources and services. It is overseen by a five-member board, appointed by the governor, and contains an office of planning and programming to coordinate financing and development of all surface transportation plans, including roads, bridges and transit. 

The legislation also reconstitutes the Highway Fund as the Commonwealth Transportation Fund, which is subject to annual appropriation by the Legislature and uses gas tax and registry fee revenue to pay debt service and contract assistance. Remaining revenues are transferred annually into the newly-established Transportation Trust Fund, which takes in all other transportation revenues, including Tobin Bridge and highway tolls, and pays for MassDOT operations. 

Under the new agency, the current system is reduced to four divisions: 1. Registry of Motor Vehicles; 2. Highway (which consolidates MassHighway, Department of Conservation and Recreation bridges and selected roadways, the Tobin Bridge, the Metropolitan Highway System, and the Western Turnpike); 3. Mass Transit (which includes the MBTA and Regional Transportation Authorities, both of which remain independent with MassDOT oversight); 4. Aeronautics (which replaces the former Massachusetts Aeronautics Commission and retains control over all municipal airports). 

The bill eliminates the Turnpike Authority, merging the Metropolitan Highway and Western Turnpike systems into MassDOT on January 1, 2010. At this time all employees and assets will be fully transferred to the new agency. 

One of the most controversial pieces of the bill is the handling of MBTA employees and retirees under the GIC. Those currently paying 15 percent of their health benefits will be required to contribute the same as their state employee counterparts – 15 percent for those hired before June 30, 2003 and 20 percent for those hired after that date. 

All pre-65 retired employees will pay 15 percent of their health insurance premium under the new legislation, and all retired MBTA employees over 65 will be responsible for their monthly Medicare Part B premium payment and up to 15 percent of any Medicare supplement plan.

According to independent estimates on MBTA health benefits, savings from this proposal will be $35 million a year, or approximately $700 million in 20 years.

Other measures include the elimination of the MBTA’s “23 and out” for future employees effective July 1, 2009, requiring those employees to reach 25 years of service and 55 years of age to collect retirement benefits. The bill also establishes the Office of Performance Measurement to impose stringent accountability on the new agency.

Additionally, the legislation puts Troop E under full control of the State Police colonel and addresses toll equity by ensuring that toll revenues are spent on tolled roads.

Massport is left untouched under the bill and remains independent because of its unique responsibility for Logan Airport and the Port of Boston. No state money is used for Massport operations.